Does the ‘bailout’ passage now return practices to normal, i.e., banks continue on lending to people who can’t afford the loans or selling bad paper to others?
How is this situation appropriate in any way?
Home prices got way out of whack. Otherwise sub prime with interest only loans, getting cash at closing, etc. never would have happened. The reverse of this is if the sub prime loans hadn’t been made the home prices would have come back down. But what happened is they fed on each other until the balloon had to burst.